So many organizations and departments create budgets based on what was spent the prior year. The start is based on expenses in the current year and then perhaps forecasted revenue in the new year to formulate a plan.  

On the other hand, ownership usually likes to budget for an increase in net profit. That means most companies determine what they need to spend and then build up their revenue figures based on the marketplace, new products, additional personnel, or other hopeful and optimistic perspectives.

Through my years in broadcasting sales, every company told me they had a unique and proprietary way to budget for the new year. Then, when I was told their approach, it was easy to see the new company’s process was pretty much the same as my previous station group’s.

This year, if it fits within corporate structure or what you’ve used for years, I’d like to encourage you to try something new. This budget season, I challenge you to budget with an outcome in mind.  

 Basically, there are two ways to increase your company’s revenue each year:

·      Drawing Power – pull in more people to do business with you during the new year.

·      Selling Power – convince people who do business with you to invest more and increase their spending.

 There’s nothing magical about this approach. Simple math creates the results. You have to secure more new customers, or current customers have to spend more. That’s the easy part. Getting it to happen is where the work begins.

MakeAdvertising and Marketing a Way2ReachThose Objectives

It’s an age-old axiom that “if you aim for nothing, you are sure to get it.” So, here’s where marketing supports your organization’s revenue expansion.

First, decide to invest dollars in a calculated way that aligns with your goal. If you want a 20% sales increase in new customers, begin by investing 20% more than you did in 2024 in outreach advertising with the expressed goal of securing new business. Then, with the right marketing professionals in your corner, you can turn your budget into practical investments executed to help you meet your increased sales goal.

Likewise, if you want current clients to increase spending by 10% in 2025, then design a plan to create tactics ensuring that will happen. Invest in a client relationship management (CRM) solution, send a regular newsletter, or integrate a marketing automation program. Also, increase the amount of time account managers regularly connect with your clients. Be sure to provide them with practical training on how to share helpful ideas, and how to ask the right questions when on client calls.  

The magic isn’t in the goal of increased sales or the hope of a better 2025. It’s in the detailed way you and your team plan on increasing your drawing and selling power.

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